Business 101 | What is operational excellence & why should I care?
It’s a simple, yet troubling question for any business: Where did all my money go? When it comes to starting, maintaining and growing a business in any industry, the term “operational excellence” should be forefront in your mind. But what does operational excellence, and why on earth should you care about it? All this and more is discussed in this episode of extrakTALKS.
If you’ve started a CBD extraction business and are wondering where the $#@! your money has gone, it may be wise to take a look around you. Unsold inventory and unprocessed materials is cash sitting on the shelves and letting more unprocessed or unsold goods and materials build up will only drive the problem further. This is where operational excellence is a practice worth implementing. Operational excellence tools allow you to apply manufacturing science to your manufacturing operation, and systematically, over time, reduce the amount of inventory that you have in your facility. This will add major dollars to your bottom line, it’ll improve your cash flow, and also improve your cash conversion cycle. Well run organizations for many years have been using operational excellence tools to manage their businesses and the cash conversion cycle.
In this episode of extrakTALKS, Dr. Jon and Randall Thompson dive into the details of operational excellence and how you can implement it in your CBD extraction business. By practicing the methods discussed in this episode, you can ensure a profitable business venture in the hemp and CBD industry.
1:55 – Weekly giveaway
3:26 – Lab coat?
4:23 – Operational excellence
8:15 – Anecdote
8:25 – kaizen event
9:24 – Lean supply chain
10:44 – Two processes
10:57 – Kan-bans
11:49 – Operational excellence conclusion
13:04 – Best books
15:21 – Lean design and learning
15:38 – Series of conversion
16:12 – Value – added vs. non-value-added
20:08 – Cycle-time
21:15 – Product introduction/process improvement/operation improvements difference summary
23:31 – Value stream mapping
25:11 – A split
29:45 – Best way to implement operational excellence
31:45 – Visible Killer
32:59 – Small business owner
34:38 – Business side of things
36:02 – Don’t wait for perfect
36:46 – Good to great by Jim Collins
42:15 – Top concern
42:40 – Mastering the Rockefeller habits by Vern Harnish
49:53 – You need the science of sales
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